The aim is to have the building, which the Times compared in potential status to the Sydney Opera House, completed by the end of 2007.
According to Lee Myung-bak, the mayor of Seoul, the city government will made 40 billion won (approximately $32 million) available for the project, and is currently looking for an appropriate site among the islands in the Han River.
"A global city needs to have a cultural infrastructure and contents in accordance with its reputation," the mayor said. "In the 21st century, investment in culture is not an extravagance, but the most efficient investment."
The mayor did not specify which locations the government was considering, although the islands Yoido and Chungjido are considered strong candidates.